June 19, 2023

Binance’s Zhao Says SEC’s Accusations Were Not Necessary

Binance CEO Zhao

Binance CEO Zhao

Binance CEO Changpeng “CZ” Zhao welcomed the agreement reached between Binance.US and the United States Securities and Exchange Commission (SEC), according to Cointelegraph.

Zhao, in a tweet, said the tensions with the SEC were not necessary, saying the resolution was a development as it was resolved on mutually acceptable terms.

“Although we maintain that the SEC’s request for emergency relief was entirely unwarranted, we are pleased that the disagreement over this request was resolved on mutually acceptable terms,” Zhao tweeted.

He also stressed that the user funds would be always safe and secure on all Binance-affiliated platforms.

It is worth noting that the US District Court for the District of Columbia, chaired by Judge Amy Berman Jackson, approved an agreement reached between Binance, Binance US, and the SEC on removing the temporary restraining order (TRO) that would freeze all Binance.US assets.

Jackson said earlier she would prefer that Binance and the SEC would reach an agreement rather than issuing her verdict and that is what really happened. Binance and the US SEC reportedly reached an agreement a few days ago.

“We are pleased to inform you that the Court did not grant the SEC’s request for a TRO and freeze of assets on our platform, which was clearly unjustified by both the facts and the law,” Binance.US said on Twitter.

According to the agreement, only employees of Binance US will have exclusive access to client funds until the litigation is resolved. US-based customers will preserve their ability to withdraw funds throughout this period. Also, all fiat currency and cryptocurrency assets associated with Binance.US have to be repatriated by the date specified in the court’s ruling.

Under this deal, the largest crypto exchange and US regulator will prevent any Binance global officials from accessing Binance.US’s Amazon Web Services tools or access to private keys of wallets or hardware wallets.

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